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April 20, 2021, 7:24 a.m. EDT

Kansas City Southern's stock soars after Canadian National's 'superior' bid valued at $33.7 bln

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By Tomi Kilgore

Shares of Kansas City Southern /zigman2/quotes/200211518/composite KSU +0.11% soared 19% toward a record in premarket trading Tuesday, after Canadian National Railway Co. /zigman2/quotes/208205632/composite CNI -0.62% /zigman2/quotes/203746923/delayed CA:CNR -0.58% announced what it called a "superior proposal" to acquire the railroad operator in a cash-and-stock bid valued at $33.7 billion. Plans for the buyout bid was previously reported by The Wall Street Journal . which would top Canadian Pacific Railway Ltd.'s /zigman2/quotes/204163517/composite CP -0.91% /zigman2/quotes/205690198/delayed CA:CP -0.78% previously agreed on buyout bid. Canadian National said its bid is valued at $325 for each Kansas City Southern share outstanding, a 27% premium to Monday's closing price of $256.40. Under terms of Canadian National's bid, Kansas City Southern shareholders would receive $200 in cash and 1.059 Canandian National shares for each Kansas City Southern share they own. In March, Kansas City Southern had agreed to be acquired by Canadian Pacific in a deal valuing the stock at $275 each and the company at about $25 billion. Kansas City Southern's stock has run up 25.6% year to date through Monday, while the Dow Jones Transportation Average /zigman2/quotes/210598063/realtime DJT -1.39% has advanced 18.3% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.36% has gained 11.3%.

/zigman2/quotes/200211518/composite
US : U.S.: NYSE
$ 308.17
+0.35 +0.11%
Volume: 1.01M
May 11, 2021 4:00p
P/E Ratio
46.37
Dividend Yield
0.70%
Market Cap
$27.99 billion
Rev. per Employee
$403,649
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/zigman2/quotes/208205632/composite
US : U.S.: NYSE
$ 112.47
-0.70 -0.62%
Volume: 1.06M
May 11, 2021 4:00p
P/E Ratio
29.87
Dividend Yield
1.78%
Market Cap
$80.37 billion
Rev. per Employee
$422,570
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/zigman2/quotes/203746923/delayed
CA : Canada: Toronto
$ 136.02
-0.80 -0.58%
Volume: 1.34M
May 11, 2021 5:40p
P/E Ratio
27.51
Dividend Yield
1.81%
Market Cap
$97.18 billion
Rev. per Employee
$566,794
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/zigman2/quotes/204163517/composite
US : U.S.: NYSE
$ 395.06
-3.64 -0.91%
Volume: 530,672
May 11, 2021 4:00p
P/E Ratio
26.71
Dividend Yield
0.77%
Market Cap
$53.18 billion
Rev. per Employee
$483,444
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/zigman2/quotes/205690198/delayed
CA : Canada: Toronto
$ 478.60
-3.77 -0.78%
Volume: 211,717
May 11, 2021 5:40p
P/E Ratio
24.53
Dividend Yield
0.79%
Market Cap
$64.31 billion
Rev. per Employee
$648,444
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
15,708.35
-221.11 -1.39%
Volume: 99.74M
May 11, 2021 5:24p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,269.16
-473.66 -1.36%
Volume: 413.18M
May 11, 2021 5:24p
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